The process of buying property and homes in France is regulated and banks give mortgages on all types of property in the country regardless of cost. The deciding factor is the real-estate costs which as a general rule are more expensive in the south. The French Riviera is very popular because of its marvellous Mediterranean coastline in the regions of Cote D’Azur and Provence. Marseille has a lot to offer and reasonably priced housing, while Paris and Normandy have excellent accommodation at competitive prices in the north. Mortgages are available from local as well as international banking chains like Barclays, though they offer loans at considerably higher rates. There are two types of mortgages on offer in France: Fixed Rate mortgages and Variable Rate mortgages. In fixed rate mortgages, the mortgage rate is fixed for the entire term so you know exactly how much you need to pay and how many payments. If you take a fixed rate mortgage you may not be able to convert it to a variable rate one later on. Fixed rate mortgages may also have an early capital redemption charge.

Variable rate mortgages have interest rates which change with the economic situation and the central bank lending rate. Usually, this just means that you will have to pay the same interest but your mortgage period may vary. You also have the option of converting your variable rate mortgage into a fixed interest rate mortgage. The interest on fixed rate mortgages is around 3.90 to 3.98% when the mortgage is in euros. It is always advisable to take a mortgage in the currency you earn in and also to factor in an additional 10% for the imposed taxes while applying for a loan.